Friedman reasoned: consumption should depend primarily on permanent income;
{"Image DocumentName": "Friedman reasoned:consumption should depend primarily on permanent income;", "Image ImageDescription": "consumers use saving and borrowing to smooth consumption in response to transitory changes in income. The permanent-income hypothesis: consumption is proportional to permanent income. \u03b1 is a constant that measures the fraction of permanent income consumed.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}